Microsoft Is Selling Fewer Surface Computers But Making More Money

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Microsoft's history with hardware has been mixed. They've made some great keyboards and mice and some that were designed to be used by extraterrestrials. And then there's the Zune. But the Surface convertible has been a massive success that created an entirely new computer category. But in their latest quarterly report, we learned that the company is selling fewer devices although their margins are higher.

Microsoft's last quarter for calendar 2017 delivered a 12% revenue boost, with the company raking in a lazy US$28.9B. Revenue in almost every market Microsoft participates in increased with Azure revenues up by 98% year on year.

But interest in the Surface Pro, at least when it comes to less expensive models seems to be waning. Reports say sales are falling with revenues saved by stronger sales of more expensive models. That's not surprising seeing there's a lot of competition from other OEMs who scrape up the low-end market.

I wouldn't be surprised if Microsoft abandons the low end completely and focus on the premium market, much like Apple. That will help them show leadership in the market without wasting energy and resources on low profit opportunities.


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